- FX snapshot: As US investors come to the fray, USD is the strongest on the back of positive US data while GBP is among the weakest.
- Data recap: US GDP came in at +2.1% compared to +1.8% expected - the dollar jumped on the back of this. Meanwhile other US macro pointers were also not too bad, further reducing the odds for a large rate cut next week: Core PCE (Q/Q): 1.8% vs. 2.0% expected; Personal Consumption 4.3% vs. 4.0% expected, and GDP Price Index Q2 2.4% vs. 2.0% expected. German Import Prices -1.4% m/m vs. -0.8% expected. Meanwhile once again ECB trimmed its Eurozone growth forecasts to 1.3% for 2020, but kept unchanged its 2019 and 2021 estimates at 1.2% and 1.4% respectively.
- Stocks were mixed in Europe after yesterday’s sell-off, but the overall positive tone from mostly positive earnings kept the bears at bay. Futures pointed to a positive start on Wall Street.
- Earnings galore: big tech companies reported mostly better than expected numbers last night and in Europe Vodafone stole the show with its well-received earnings. Alphabet reported revenue that beat expectations and announced its biggest stock buyback in history - $25 billion worth of stock, no less. Meanwhile, Intel, which also beat profit estimates, agreed to sell the majority of its smartphone-chip business to Apple – the deal is valued at $1 billion. However, Amazon results disappointed investors as costs went up because of its one-day delivery service. Today, Twitter results showed revenue of $841.4 billion (higher than $828.49M expected), with and adjusted EPS of $0.05 (which was below $0.19 expected) – but shares rose as magnetisable Daily Active Users Beat Expectations. McDonald's EPS was in line at $2.05 with sales +5.7% vs. +4.4% expected.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.